Nike Apologizes for Selling Sneakers in China Without 'Air' -- Update
March 15 2017 - 07:17PM
Dow Jones News
By Liza Lin and Sara Germano
SHANGHAI -- Nike Inc. admitted that some of its sneakers sold in
China were inaccurately marketed, after state television accused
the company of making false claims in a high-profile broadcast.
The claims were leveled during CCTV's annual March 15 or "315"
broadcast, which coincides with World Consumer Rights Day and often
targets multinational companies. The broadcaster said that a model
of Nike's Kobe basketball shoes was advertised as containing its
signature "zoom air" cushion.
In a statement, Nike said 300 pairs of its Nike Hyperdunk 2008
FTB basketball shoe were sold in China last April "with an
inaccurate product description stating that the shoe contained air
bags." The company said it apologized to affected consumers and
offered refunds.
Nike said Wednesday it "will fully cooperate with the government
regulators regarding their inquiries."
In social-media forums, Chinese consumers have complained about
the discomfort of the shoes. One buyer approached Nike and was told
the shoes didn't contain an air cushion and was offered a refund,
CCTV reported.
Nike faced similar accusations in 2012, when state media said
the sportswear brand was fined 4.87 million yuan ($704,000) based
on claims that it was overcharging consumers and advertising its
high-end basketball shoes as having a double air-cushion, when the
shoes were found to only have one. Nike China apologized and
offered refunds for the consumers who bought the affected shoes,
according to the state-run Xinhua News Agency.
Although scarcely noticed in the U.S., March 15 has become
something of an unofficial holiday in China, thanks to the annual
two-hour broadcast by China Central Television spotlighting
corporate misdeeds. The show has hit a chord in a country where
consumers have few avenues for redress when it comes to dealing
with fake and faulty products, or poor customer service.
In the past, CCTV has issued accusations against foreign
businesses including Volkswagen AG, Apple Inc., McDonald's Corp.
and retailer Carrefour SA on issues ranging from food safety to
quality defects and subpar customer service. In 2013, the
broadcaster accused VW of selling cars in China with substandard
direct-shift gearbox systems that caused acceleration problems and
car accidents for an unspecified number of consumers. Volkswagen
said then that it planned to fix gears with problems for customers
in China.
China has been one of Nike's fastest-growing regional segments
in recent years, and a priority as the Beaverton, Ore.-based
company faces stiffer sales competition there from chief rival
Adidas AG. Nike reported sales in Greater China of $1 billion for
its most recent quarter, up 13% from the previous year.
--Wayne Ma in Beijing contributed to this article.
Write to Liza Lin at Liza.Lin@wsj.com and Sara Germano at
sara.germano@wsj.com
(END) Dow Jones Newswires
March 15, 2017 19:02 ET (23:02 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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